Looking for a fast and fairly painless way to access up to
$250,000 in capital? You've got good timing. The SBA has just
expanded and modified its SBAExpress pilot loan program-a move that
will both augment the pool of funding available and ease the loan
process.

"We're extending the maximum loan amount from $150,000
to $250,000, and we're allowing more banks to
participate," explains SBA administrator Hector V. Barreto.
"In the past, we allowed only banks with significant SBA
lending experience to participate, which eliminated a lot of
smaller and rural banks."

So far, response has been overwhelmingly positive, with more
than 200 new lenders joining the program. "There's no
doubt it will create a significant increase in loan volume,"
asserts Barreto, who notes that since the program was launched five
years ago, more than 50,000 SBA-guaranteed loans totaling more than
$2.6 billion have been granted.

To get in on the action, ask lenders in your area about the
program, advises Barreto, or check with the SBA at (800)
U-ASK-SBA.

No Way In

Good, old-fashioned barriers to entry are back. In today's
tight capital market, it's becoming essential to show VCs,
banks and other capital sources that your company has an advantage
that will discourage competition, explains Steve Brotman, managing
director at New York City-based Silicon Alley Ventures. "In
the past, barriers to entry was sort of swept under the rug under
the assumption that the first-in advantage was enough. But now VC
firms are more concerned about competitive advantages like
referable customers, partnerships with distribution channels or
secure patents."

For Ahin Savara, CEO of Burbank, California-based Filmport-an
emerging firm that markets wireless and Web-based communications
solutions to film and television production companies-letters of
commitment (LOCs) from prospective customers proved a boon in
approaching venture firms. "It helps show you have a real
customer base," he explains. "It lets me go back to the
VC and say 'Here's a list of clients who have committed to
being involved with our services.'"

Of course, barriers alone won't win that all-important
funding offer, cautions Savara. "A clear path to profit and a
strong management team are first and foremost. An LOC or a patent
on A, B or C alone is not enough."

Safe Passage

When you plan to leave your kids or spouse an inheritance, you
probably want to do just that-not bequeath a hefty donation to the
IRS. Yet, if a traditional IRA is your legacy of choice, that's
exactly what will happen. Fortunately, there's an easy
alternative that can help you soothe the tax sting when leaving
extra retirement cash to your family members-a stretch IRA.

This retirement vehicle extends the period of tax-deferred
earnings of assets within an IRA beyond the lifetime of the
IRA's primary holder, allowing relatively affluent investors to
pass their IRAs down to their kids and even grandkids.

"A nonspouse beneficiary used to be required to take the
money out as a lump sum or over a five-year period," explains
Tom Anderson, CEO of Portsmouth, New Hampshire-based Pensco Trust
Co. "But a stretch IRA allows the individual to inherit the
IRA and, rather than take a significant distribution-which would be
subject to higher taxation-leave the funds in the IRA over a period
determined by his or her own life expectancy."

The result is that the IRA continues to grow at a compounded
tax-deferred rate, yielding correspondingly large payouts along the
way. "If, for example, an entrepreneur leaves a stretch IRA to
his 20-year-old son, his son can let the IRA continue to grow
tax-deferred while he takes distributions out over roughly 50 years
based on his life expectancy," explains Anderson, who adds
that stretch IRAs have grown more popular since tax changes in
2001, which modified restrictions so investors no longer have to
establish a stretch IRA before they begin mandatory distributions
when they reach age 70.

Thanks to the ubiquity of both IRAs and 401(k) plan rollovers,
more and more Americans are retiring with significant funds in
multiple IRAs, making the stretch IRA a powerful estate tool those
nearing retirement may want to employ. But stretch IRAs aren't
for everyone. To guard against problems, entrepreneurs considering
a stretch IRA should be fairly certain that they won't need the
IRA assets themselves-and also plan on reassessing their plans
regularly. After all, tax benefits will be of little comfort to a
grandchild accidentally left off of the beneficiary list.

Signed, CEO'd,
Delivered

45%of the 250 biggest international companies will
release corporate responsibility reports this year, compared with
35% in 1999.SOURCE: KPMG

In a push to reassure skittish investors, the SEC began
requiring all CEOs and CFOs to personally certify information
appearing in financial reports filed on or after July 30. How are
top executives coping with the extra helping of high-pressure
responsibility? Very carefully, says Robert Mittelstaedt, vice dean
of executive education at the Wharton School at the University of
Pennsylvania. "There's a dot every 'i' and cross
every 't' attitude right now," he reports. "CEOs
are not afraid of certifying financials because despite what
we've seen in the media lately, most firms are not doing
outrageous things. But they are concerned about making sure that
even an honest mistake isn't made because the current
environment is such that even an honest mistake would be viewed
very harshly."

The measure also ups the ante by making CEOs and CFOs personally
liable if the reports are later found misleading-a prospect fueling
concern. "It is certainly causing more angst," asserts
David Matheson, a partner at Perkins Coie LLP, a Seattle-based law
firm. "Our public-company clients are concerned about both the
potential personal liability of the executive officers and the need
to comply with new requirements."

But such worries may prove to be unfounded. "While the new
certification requirements may slightly change the manner in which
plaintiffs bring action against CEOs and CFOs as individuals,"
says Matheson, "I don't think they will change the
underlying substantive exposure of these individuals."

Jennifer Pellet is a
New York City-based freelance writer specializing in business and
finance.